Age Life Method at Life

Age Life Method. 12 + 48 = 60 years (total economic life). Depreciation is calculated by multiplying the ratio of the effective life to the total economic life by the replacement cost new of the subject.

A technique of estimating all forms of depreciation (appraisal) sustained by an asset. It is easy to use and easy to explain to a client. It is easy to use and easy to explain to a client.

PPT The Cost Approach PowerPoint Presentation, free

The economic age/life method (also called the straight line method) is the most common depreciation technique employed by residential appraisers. It is easy to use and easy to explain to a client. The first step in tax assessments 3 cost approach objectives • to better understand highest and best use and what makes a special purpose property • establishing a benchmark value assuming the principle of substitution for buy, sell, demolish, It is based on the effective age of the property or component, divided by the total economic life of the property or component.